Foreign investors considering Nepal will find the registration process faster than expected. Business registration in Nepal has been streamlined by recent digital reforms. Domestic companies often receive their incorporation certificate within 1–2 weeks. In fact, official guidance notes that the Office of Company Registrar (OCR) typically finalizes new registrations in about one week. Under Nepal’s updated laws (the Foreign Investment and Technology Transfer Act 2019 and Industrial Enterprises Act 2020) the process is clearly defined for foreign companies. Read on for a detailed, step-by-step timeline tailored to foreign businesses, plus tips to avoid delays.
Reserve a Company Name (≤ 1 day). Start by reserving a unique company name online via the OCR portal. This takes less than a day if the name meets regulatory rules.
Prepare Documents. Once the name is approved, prepare legal documents: Memorandum of Association (MOA), Articles of Association (AOA), and an application form. Gather identification for all shareholders (citizenship certificates or passports) and a proof of registered office (like a lease agreement).
Submit to OCR. Upload your documents through the OCR’s new online portal. Pay the government registration fee (based on authorized capital). OCR officers will review compliance.
OCR Review and Approval (≈1–2 weeks). If paperwork is correct, OCR issues the incorporation certificate, usually within 5–10 working days. If any corrections are needed, OCR will request updates, which can add a few days.
Post-Incorporation Formalities. After registration, immediately obtain a Permanent Account Number (PAN) from the Inland Revenue Department (IRD). A PAN is issued in roughly 3–5 working days. Then register for VAT if applicable. Finally, register the business locally at the municipal ward office (typically within 1–5 days) and pay the local business tax.
Documents required:
Memorandum and Articles of Association (MOA/AOA)
Reserved name approval certificate
Shareholders’ IDs (citizenship/passport)
Proof of registered office (rental agreement)
Board resolution or authorization letter (for foreign company representatives)
Advantages of registration: A registered Nepali company grants limited liability, access to bank loans, government contracts, and legal protections.
Domestic company: From name approval to certificate, expect about 1–2 weeks. Including post-steps (PAN/VAT, local license), the full setup may take 2–3 weeks.
Foreign branch office: Generally requires 4–8 weeks. First, obtain any sector-specific approvals (often 2–3 weeks). After that, OCR registration takes ~1–2 weeks. PAN/VAT adds ~1 week and local office setup 1–2 more weeks.
Foreign subsidiary (100% foreign): Plan for 3–5 months on top of the normal timeline. Foreign ownership requires prior approval from the Department of Industry (DOI) or Investment Board – a process that usually takes 3–5 months. Once DOI approval is granted, forming the company at OCR then follows in about 1–2 weeks.
Liaison/Representative office: A liaison office (non-revenue) can register in roughly 2–4 weeks. It does not generate income and often skips full DOI scrutiny, so its setup is slightly quicker than a commercial branch.
| Company Type | FDI Approval Needed | Registration Time (Approx.) | Notes |
|---|---|---|---|
| Nepalese Private Company | No | ~1–2 weeks | PAN/VAT registration follows (~3–5 days). Ward registration ~1–5 days. |
| Foreign Branch Office | No (sector approvals) | 4–8 weeks | Includes ministry/sector clearance (2–3 weeks) plus OCR ~1–2 weeks. |
| Foreign Subsidiary (100% foreign) | Yes (DOI) | 3–5 months + ~2 weeks | DOI/IBN approval (3–5 months), then OCR (1–2 weeks). |
| Liaison/Representative Office | No (not revenue) | 2–4 weeks | Cannot earn income; simpler setup with minimal approvals. |
Foreign investors have multiple options. A local subsidiary (private limited with foreign equity) requires full compliance with FDI laws. Most industries allow 100% foreign investment, but sectors like atomic energy, narcotics, and local retail services have restrictions. Before incorporation, a foreign investor must apply for an FDI approval certificate. This DOI/IBN approval is a key cause of delay (3–5 months).
A branch office operates as an extension of the foreign parent. It cannot enter new business areas beyond the parent’s scope. Branches need permission from the concerned authority (DOI or the relevant ministry). Expect about 4–8 weeks overall.
Representative (liaison) offices are even simpler: they only liaise and cannot generate revenue, so they avoid many licensing steps and register faster (often ~2–4 weeks).
Nepal’s government fees for company registration are modest and depend on capital. For example:
Up to NPR 100,000 authorized capital → NPR 1,000 fee
NPR 100,001–500,000 capital → NPR 4,500 fee
Larger companies pay higher fees proportionally.
Branch offices pay a fixed fee (around NPR 100,000). In addition, budget for PAN registration (~NPR 1,000) and local ward registration (~NPR 5,000). Notarization and translation costs may also apply.
Incomplete or incorrect paperwork is the most common delay.
Missing approvals (like sectoral clearance) can stall branch setups.
Foreign companies must ensure notarized and attested home-country documents.
Hiring a local consultant avoids mistakes, saves weeks, and keeps the process smooth.
How long does business registration take in Nepal?
Domestic company registration takes about 1–2 weeks. A foreign branch office takes 4–8 weeks. A wholly foreign subsidiary requires DOI approval first (3–5 months) plus 1–2 weeks at OCR.
What documents are needed to register a company in Nepal?
You need a reserved name, MOA/AOA, shareholder IDs, office lease proof, and authorization letters for foreign representatives. Foreign companies must also provide their incorporation papers.
Can foreigners register a company in Nepal?
Yes. Most sectors are open to foreign investors, except restricted industries. A subsidiary requires DOI approval, while a branch office generally registers in 4–8 weeks.
How much does it cost to register a business in Nepal?
Government fees start from NPR 1,000 for small local companies. Branch offices pay about NPR 100,000. Additional costs include PAN, VAT, local registration, notarization, and consultancy fees.
What factors can delay company registration in Nepal?
Delays happen due to errors in MOA/AOA, missing IDs, or pending DOI approvals. Working with local experts reduces errors and speeds up approvals.